The pandemic spurred a seismic shift in real estate demand, catapulting the Hamptons into a frenzy of movement. As the dust settled, the question on everyone’s mind was: How sustainable is this trend? Judi Desiderio, the CEO of Town & Country Real Estate, has her finger on the market’s pulse. She produces some of the most accurate and insightful market reports and navigates the complexities of economic shifts, climate concerns, and the luxury real estate landscape.
Desiderio notes that the Covid-19 wave recorded the region’s highest number of home sales. “While there was an expected calming down in 2022, the realities of high inflation, geopolitical tensions, and the sharp rise in interest rates have created a complex backdrop for the real estate market,” she explained. Despite the turbulence, she remains optimistic about the future, believing that 2025 will usher in a more stable environment for buyers and sellers alike.
With increasing apprehension about climate change, potential buyers of waterfront properties are seeking advice on long-term investments. Desiderio emphasizes the importance of resilience in property selection, referencing her experience living on Gardiner’s Bay. “There’s nothing like living on the water; I call it Mother Nature’s therapy. While some areas are low-lying, they are far less vulnerable than places like Miami,” she asserted.
As someone deeply attuned to the nuances of the Hamptons market, Desiderio highlights a pressing need for workforce and affordable housing. “The municipalities are finally recognizing the immediate necessity for affordable options for local families, seniors, and young adults,” she said. This shift could help alleviate some traffic issues plaguing the region, creating a balanced demographic landscape that benefits all.
The ongoing tension between development and preservation remains a pivotal concern in the Hamptons. Desiderio believes local towns have been slow to recalibrate this balance, but she sees a renewed focus on thoughtful planning. “Just like the Fed, they took too long to act, but now there’s a concerted effort to get it right,” she explained.
Interest rates have been a hot topic among potential buyers, and Desiderio notes that a recent dip in rates could signal positive movement in the market. “Until rates hit the low fives, we may not see a significant impact, but there’s a palpable exhale in the air,” she remarked, pointing to the uptick in new listings and transactions.
Addressing the affordable housing crisis, she insists there is no single solution. “For decades, municipalities have been advised to allow accessory dwelling units, mother-daughter homes, and provide for various housing needs. Local business owners are eager to contribute to these solutions despite the recent tax implications for buyers,” she said.
As the luxury market often serves as a bellwether for broader economic trends, Desiderio has observed a notable increase in high-end transactions exceeding $18 million. “When wealthy buyers move in mass like that, it often signals a hidden motivation — taking money off the table from the stock market and putting it into hard assets like real estate,” she noted. This approach suggests a belief that real estate remains a robust hedge against inflation.
With rising environmental consciousness, Desiderio advised clients on the long-term viability of coastal investments while observing a subtle shift toward more inland areas. Yet, she affirms that “waterfront living remains the golden ring.”
Sustainability is increasingly influencing construction and renovation practices in the Hamptons. “Solar energy has become more prevalent, and alternative materials are always on the radar for builders,” Desiderio said, hinting at a growing commitment to environmentally friendly practices.
As the Hamptons face affordable housing challenges, Desiderio foresees potential impacts on the service industry that supports the luxury market. “Innovative solutions will be crucial to ensure that all community members’ needs are met,” she said.
Lastly, the Hamptons’ cultural heritage — its draw for artists, musicians, and writers — remains a key element of its identity. Desiderio believes this vibrant community will continue to shape future development and community planning, enriching the region’s allure.
Judi Desiderio stands as a guiding force in an ever-evolving market, keenly aware of the factors that will shape the Hamptons’ future. As she navigates the challenges and opportunities ahead, one thing remains clear: the desire for a slice of this coastal paradise is as strong as ever.
To learn more about Judi Desiderio, visit townandcountryhamptons.com.
